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When applying for a loan, the lender expects to pull your credit report. After all, you owe money. It makes sense that your lender would want to see what kind of risk you present.
But what about other types of companies?
Even if you don’t owe money, you may be surprised that certain companies check your credit report.
Below is an example of a company doing a credit check on you.
1. Credit card company
Credit card companies can see your credit information when you apply for a card. However, if you are a customer, the company can always see your credit report. according to Consumer Financial Protection Bureau (CFPB).
In addition, prospective creditors can access certain information in your credit file to determine whether to offer what is known as a “pre-screen” offer for new credit cards.
Pre-screening is permitted under the federal government Fair Credit Reporting Act, but you can opt out of pre-screening. Analyze the process in “How to Stop Unwanted Credit Card Emails Forever”.
2. Insurance companies
According to the CFPB, the Fair Credit Reporting Act also allows credit bureaus to release your credit report in connection with “providing insurance coverage or setting premiums.”
Federal law allows insurers to pre-screen offers, but you can opt out of this pre-screening.
3. Employer
As part of a background check, your employer can request a copy of your credit report. The Fair Credit Reporting Act allows credit bureaus to release your report for employment purposes.
However, employers must obtain written permission to obtain a credit report in advance. according to Federal Trade Commission.
4. Telecommunications companies
Your service provider may conduct a credit check when you sign up for telephone, television, or Internet services.
It’s not exactly a loan, but some companies want to make sure you’re likely to pay the bills. James Garvey CEO of Self Financial, a credit building site.
Garvey told Money Talks News:
5. Utilities
What about water, gas, and electricity contracts?Say you might need to submit to a credit check Logan AlecHe is a CPA and founder of the financial education website Money Done Right.
“Utilities are generally postpaid, meaning you’re billed after the fact,” Allec told Money Talks News. “In a way, these companies are making you a short-term loan. .”
If your credit score is low, utilities may not trust your ability to pay your bills on time and may ask for an upfront payment, Allec said.
6. Government Agencies and Courts
“You may think that the government shouldn’t have a business asking for your credit, but sometimes they actually have good reasons,” says Allec.
Allec points out that when you apply for government assistance, you may be subject to a credit check to see if you are truly eligible.
Additionally, the Fair Credit Reporting Act allows credit bureaus to make your credit report public.
- upon court order
- Responding to Subpoenas
- For certain child support determination and enforcement purposes
7. Landlord
Looking for new bargains? Your prospective landlord may want to take a peek at your credit report. Leslie Tanea New York City-based attorney specializing in consumer finance and debt.
She says that renting an apartment is a long-term contract, and many landlords want to keep you out of trouble.
“Rent isn’t typically reported to credit bureaus, but a credit report can show the likelihood of paying bills on time and the overall likelihood of financial liability,” Tayne said. told Money Talks News.
In some cases, she says, you may need to provide a higher deposit if your score is low.
8. Assisted Living Facilities and Nursing Homes
When you move into a nursing home or nursing home, you are subject to a credit check.
“These facilities treat the application like an apartment application, especially since the costs are generally high,” says Tayne. “Good credit indicates a facility that you are responsible for payment and use the funds you have to pay for your stay.”